low mod housing fund was $17.8 million. since the edition solution of the redevelopment agency earlier this year, the mayor's office of housing has assumed ownership of the redevelopment agency parcels on octavia boulevard. * dissolution since the market octavia plan was adopted the city has sold or signed purchase agreements for seven additional parcels beyond the ones i already mentioned. oh, i think i'm one slide off, i apologize. let me find my place back here. okay. since the market octavia plan was adopted the city has signed or sold or signed purchase agreements for seven additional parcels s, h, j, p and v for a total of 21.7 million dollars.

* f the city made a conscious decision that beyond the sale of the aforementioned parcel to the redevelopment agency -- i see, my notes are in a different order than the slides. i apologize. let me go back. all right. i apologize. my notes are stapled in the wrong order here. let me address this slide here. the city made a conscious decision that beyond the sale of the first parcels to the redevelopment agency it would wait to sell the larger parcels until the market octavia community planning process had been successfully completed. here on the screen you will see the sales that did occur prior to the plan adoption which were focused mostly on subdividing existing parcels into more regular shapes and selling oddly shaped remainders mostly to adjoining property owners. these sales generated $5.4 million for a total premarket octavia adoption of $23 million. okay. now we're on this slide. apologize again.

since the plan was adopted, the market octavia plan, the city has sold or signed purchase agreements for seven additional parcels f, h, j, p and v for a total of $excuse me, f, h, g, p, n and m for a total of $21.7 million. >> ken, can i just break in here before you get to anticipated parcel sales? >> yes. he it to just say we're joined by supervisor christina olague, the sponsor of this legislate atheistsv i'd just like to give her an opportunity to give her remarks. thank you. * >> thank you to everyone that is here today for this item. i have heard questions from different groups of neighbors, advocates and on developers about the status of the ok [ta-eufpl/ctavia boulevard projects. i wanted to make sure we begin to publicly address the questions that the community has around the plans for the different parcels. the larger projects and the disposition of parcels o and p requires the involvement from several different agencies and

in that work there are really three key areas that frequently come up from my office. * obviously transportation is one of those issues, and along with that i'm interested in hearing about both the rains for the affordable housing component and the expectations we can have around the timeline and community participation. i would also appreciate having some understanding of the possibility of temporary or interim, and i want to emphasize pop-up gardens, farms or other similar installations that will keep the site active until the groundbreaking. what i hope will become more clear in today's hearing is the direction we are going with both the market rate and affordable housing parcels, the size of the existing commitment the city has made toward transit improvements in comparison to housing and the type of commitment we can make to the neighbors and community

around the city engaging in a dialogue that is both open and action-oriented. in addition to the significant budgetary impact, these parcels are at an intersection of land use issues along with neighborhood services. so, i want to ensure that we view the transit and affordable housing conversation through a lens of neighborhood and community impacts. i would like to thank openly and theresa yunga from the mayor's office of housing for being here and i would like to also acknowledge ken rich who will -- who is making the presentation. so, those are my comments. just want today put that on the record. thank you. >> thank you, supervisor olague. mr. rich, please continue. >> the parcels you see on the screen now are those that are remaining to be sold. everything else that came before this is either already sold or in contract to be sold. these are the parcels that remain to be sold. we expect to issue an rfp for parcels r, s and t in the next

couple of months. parcel l is the -- is part of the proxy project and we expect to wait a few years before putting that parcel up for sale. so, just to quickly cover temporary use because the supervisor mentioned. because of the thing previous several years we saw land prices lower significantly historically, [speaker not understood] some central freeway parcels until the market recovered. and the city wanted to see -- soroush-azar i, till the market recovered and the city would see a better sale price. while rate waiting for the market to recover, we heard from neighbors they didn't want to see vacant lots the next five years. aggressively we pursued innovative temporary uses on the parcels. on parcels k and l you will currently find proxy, which is a mixed use retail pop-up which currently has coffee, ice cream, food trucks and a beer garden.

proxy has exciting plans which will be presented to the board in the near future to build out the remainder of parcel k with more temporary activation in the years before parcel k is ready to be used for affordable housing development. on parcels o and p the two largest parcel in the form of central freeway footprint are currently home to the hayes valley farm. and finally, parcels r and s which are very narrow parcels on octavia boulevard are currently used by the growing home community garden. i wanted to do just a few additional words about the hayes valley farm. as you know, an agreement was made with the farm for temporary use of parcels p and o which again are to form a off ramp parcels, the two largest parcels. these are the most significant sites for both affordable and market rate housing on the boulevard. these parcels were activated in 2010 by the farm and by early 2011 when it became apparent that a purchase agreement for parcel p was imminent, city staff began a concerted effort

to work with the farm to find a new location. i am pleased to be able to say that the farm is working closely with the community and the rec and parks department around the buchanan malls to bring the farm to that community. the current expectation that we will give notice to the farm on december 1st to vacate parcel p, but that they may remain on parcel o adjacent as a transition point until june 2013. after that point we expect to have a new location available as i just mentioned, and once construction begins on parcel p, it would not be safe for a farm operation to remain on parcel os. in addition, the mayor's office of housing intends to release an rfp for family affordable housing on parcel o by the end of this year. so, just to do a little bit more focus on the dollars and cents, the number on the top of this slide is what we have in the bank now, what the city has in the bank now from previous

sales and ongoing rental revenues from all of the parcels. minus what has been spent to date on designing and building octavia boulevard and on the ancillary projects. the rest of the numbers below show expected revenue from upcoming sales of all the remaining parcels for a total expected available revenue of $31 million. i'll also point out for the parcels that are not in contract yet, we might be a little low on the numbers and we'll have to revisit the appraised values of these parcels which has probably increased a little bit. on this slide in the first box is shown costs for all of the ancillary projects out of the total budget of about $11 million for the ancillary projects, 8.5 million remains to be spent. in the second box is the estimate for van ness avenue improvements to satisfy the city's obligation to caltrans to bring van ness avenue up to a state of good repair under the cooperative agreement. and again, this number for van ness avenue is still being looked at. this represents kind much a

maximum that we think it would cost. so, between van ness and the ancillary projects, we need to spend a total of about another 21 million on capital projects. this slide shows our expected ongoing revenue from leases. we have a few leases that will go on for quite a few years whereas the rest of the parcels will be sold and there will be no more lease revenue. parcel [speaker not understood] school district through 20 74. and we expect to receive parking revenue for a portion of one of the caltrans parcels under the freeway we're going to maintain for parking. and you see ñrthose two on the box. in

>> experiencing technical difficulties >> we believe the true up funds can be transferred following next year. as summing we close sales on parcels p and v which are the larger dollar amounts.

and these are already in contract and expected to close. funds for the van ness repaving will be available by the time repaving is scheduled to begin in about the year 2015. and again, one last note, the numbers above are still being finalized and not exact, but we don't expect them to move more than a few hundred thousand dollars in any direction. almost finished here. just a couple words on the -- to give the committee a picture of those items which should be coming before the board in the near future. moving forward; we need to complete the central freeway ancillary projects as i mentioned, rehabilitate van ness avenue. some of those parcels which are not in contract, and also make sure that we return the excess funds to the mayor's office of housing. as for those items where expected to come before the board in the near future, you see on the slide both leases with caltrans for the skid park

and dog run [speaker not understood]. the hub will need to be vacated. in addition we expect to request a minor adjustment of planning code requirement for the two small parcels m and n. as a reminder those items which you have already authorized via a 2009 ordinance are shown on the bottom of the slide and so the disposition of the remaining parcels at market rate are already authorized by the board. this concludes my presentation. olson lee from the mayor's office of housing is going to say a couple concluding words. and we also have representatives from real estate and dpw here if there's any questions for them. >> thank you, mr. rich. and olson lee is our director of mayor's office of housing. >> thank you very much, supervisors. olson lee. ken rich's presentation pretty much covered the, sort of the nuts and bolts and sort of the dollar amounts of the plan going forward.

i just wanted to talk a little bit about how both first the redevelopment agency and [speaker not understood] the mayor's office of housing has used and intends to use the affordable housing parcels. clearly one of the goals of the early involvement of the redevelopment agency was to front money towards the completion of the boulevard and facilitate that at a time when there were not entitlements for the remaining parcels. and, so, we were able to enter into agreements with the city early on, provide funds, funds that were from our low mod housing funds to the city so that the city could begin working on the octavia boulevard. and we were very, very glad to do that, in part, because one of the goals of the -- both the neighbors as well as the city

was to restitch the neighborhood. not only were we talking about transportation improvements. we're talking about how we're going to rebuild upon those vacant parcels and how those vacant parcels add to a reinvigorated neighborhood. and i'm very, very pleased that work with the neighbors in creating half of those units that were -- are being projected as affordable housing units and doing that in a way that has been very, very sensitive to the notion of quality design, to the notion of diverse populations being served. the first two affordable housing parcels, parcel a and parcel c were senior developments. the next development was a affordable rental development for people with developmental disabilities.

the most recent development, which is the richardson apartment, is for persons who were formerly chronically homeless. i think in all of those cases we've provided a very well designed and well operated affordable housing development and we intend to do so for the future of affordable housing parcels. what we had assumed for parcel o was looking at affordable family housing because that was one of the population that we had not yet served in the previous development. * populations and we hope to develop those to provide for the development of affordable housing for transitional use on parcel u and ultimately in 2020 when our lease with proxy that we hope to do some additional

affordable ownership housing on parcel k. in that way, we will have provided sort of a breadth of affordable housing serving, again, a very, very difficult verse need. i'm pleased to report back to the board that not only has our affordable housing been successfully financed, but it's been recognized both by the aia, and most recently the richardson apartment was recognized by not only national organizations, but global organizations in terms of its quality of design, as well as the population it serves. and it really is a reflection of not only the mayor's office of housing, but also the city as a whole because clearly the mayor's office of housing cannot sustain -- we can provide the capital, but in terms of the operation of, say, richardson apartment, that is very dependent on our relationship with both the department of public health and human services agency. so, again, we look forward to

answering any questions that you may have on our parcels as well as the rest of the octavia plan. thank you. >> supervisor wiener? >> thank you, mr. chairman. i have a question. i don't know if it's proper to address it more at mr. rich or open [speaker not understood]. so, i know in terms of the financial transactions surrounding the parcel transfers, earlier this year the transportation authority and its council had raised concerns about those transactions. and i just wanted to know what the concern was and what the status is and were those concerns valid or not valid? >> thank you. shortly before an earlier hearing on the finance committee a few months ago,

transportation authority raised questions before the hearing. one of the reasons we're here today is to address those concerns. so, we have been advised by the city attorney that the path we're on is something that we can do. i would refer to the city attorney for further detail on that because i don't want to give you a legal answer, but i think that's why the city attorney is here, to answer that question. >> then, to the city attorney. >> yes, i'd be happy to answer that. deputy city attorney carol wong. the concern was the amount of money that we were showing as a true up going back to the agency and some of the concerns of whether or not that should really be used for transportation projects. and we agree with the transportation authority that all the proceeds coming in from the sales of these properties were to be used for transportation projects. what i think the overlook was is at the time the agency bought these parcels we weren't sure what the purchase price was going to be. we knew the upper amount was going to be approximately $17-1/2 million, but it could be a lower amount and that lower amount would have been the difference between the funds received from all these

different parcels and the cost to do the transportation projects and the ancillary projects that were listed in that resolution. when the transportation authority looked at this earlier, they were looking at money going back to the agency and thought that was money going to affordable housing instead of for transportation purposes. but really what it was was that we were looking at what the purchase price the agency was going to pay. and at that point from early estimations we could tell that the purchase price was going to be the lower amount. it wasn't going to be 17-1/2 million, but approximately am around million. the shortfall was going to be a little bit less. the money was not going to be given to the agency and now mo, affordable housing. in essence the amount they overpaid up front as we were wait tog figure out what the purchase price would be, they agreed they would pay the higher amount and wait i'd the end of the day and see if that was going to be the lower amount for the purchase. >> then it would be a true up? >> yes, that would be a true up

at the end of the day. they would look at the difference between all the proceeds coming in, all the costs going out and the difference between that was going to be the amount the agency paid for the parcel. >> and, so, apparently a misunderstanding? >> i think so. we all agree these need to be used -- revenues need to be used for transportation projects. but the amount of money going back to the redevelopment agency and mo was not revenue. it was amount returned back to them that they had prepaid up front, a loan in essence. >> as i understand, i wasn't sitting on the budget committee at the time, but that memo from the transportation authority was delivered very shortly before the hearing? >> yes. >> was there any discussion with the city attorney before then? >> no, we weren't aware of that until the meeting. >> you know, i think it's good that we have some of those multiple agencies [speaker not understood] looking at these issues and raising concerns that can then be hashed out. and i think a better work product can come from that. but you know, i think it's

really important for agencies to coordinate so that we don't have unnecessary fire drills, especially when maybe not everyone has all the facts at their fingertips at the time. we've seen this before during the cpnc hearing as well where a memo will arrive at the last minute and it causes i think some fire drills that can be avoided. so, i'm glad we were able to work through that. thank you. >> thank you. supervisor olague. >> yes. i guess what i'm hearing, then, is that the 9.8 million will be remaining with mayor's office of housing and it won't be used for van ness vrt or other projects that were being, you know -- >> that's correct. keeping in mind that's an estimate. but we're pretty sure it's right around that number and that's the amount we would assume back to mo, yes. >> okay. >> thank you. i just wanted to say i know we have a number of hayes valley farm and hayes valley residents

that are here today. i wanted to thank openly for the overview of the different affordable housing parcels, it looks like a and c are senior housing, the richardson apartments are for formerly homeless people. >> formerly homeless. >> there is disabled housing. o is the big one that is going to be half of the hayes valley farm is, it looks like a big one, family sized below market rate affordable housing. >> the thinking right now is that it it will be for family rental. the population we hadn't served with the other sites at this point. >> and then u, which is closer to market street is transitional to aged youth housing. that proposal, that is a smaller one at about a million dollars? >> that's correct. at this time. >> thank you. >> and clearly our ability to serve transitional age youth is a function of our cooperation and the funding of children

youth and families agency. >> very good, thank you. mr. rich? >> one thing i neglected to mention i think is a very good thing for us to know is that including the 100% affordable parcel when they're all built out and market rate parcels with the inclusionary affordable housing, octavia boulevard will be at 50% affordable unit. so, i think we should have mentioned that is something to be really proud of with this project. >> thank you. so, if there are no other questions, supervisor olague. >> yes, are we going to open it up for public comment? >> yes. because of the large number of people, let's limit this for two minutes, at 30 seconds there is a light that will go off. please try to stay within two minutes, everyone. >> ken greenstein, bob barn well, followed by nick parker.

hello, i'm bob barn well with the hayes valley neighborhood association, chairman of the public safety committee. thank you, supervisor olague. this is right in the heart of your district and it's four blocks from supervisor wiener's district. we're talking about parcel o, the hayes valley farm. and why would you say public safety is involved in this? because the hayes valley farm is reinvigorating the community. it's involving the youth of the community and we want them to be involved there. would you like the youth of the community to be standing around on the corners or would you like them to come to lectures at the hayes valley farm? we want the parcel o kept open for the hayes valley farm until you have decided that you want to use it for the housing that you want to develop. why does the proxy get parcel l until 2020 and the hayes valley farm is looking at moving out within the next couple of months? this is very important for the

community and, you know, we want to reinvigorate the community and the hayes valley farm is worldwide known. it's something that's very good and it's a crime prevention tool. why don't we use the hayes valley farm, allowing the youth and the community to use the hayes valley farm and as a crime prevention tool and keep it there until you're ready to develop it. there's no reason that's why the people developing parcel p are allowed to use parcel o when other redevelopment things are not being used. parcel o should be kept for the hayes valley farm until you're ready to make a plan for it. thank you. >> i'll go to the next three. if you heard your name, you can come up to the mic. jessie raider followed by jay rosenberg and jim warshel. hi, thank you. i lived at 427 fell, basically

there's only two buildings on the whole square block that makeup hayes valley farm. and i lived in one of them for the last five years. and, so, looked out my window and saw firsthand the benefits the farm has brought to the neighborhood t. has turned from a place that was homeless encampment and drug use which i could literally see out the back of my bedroom window into a vibrant community space that now provides a community education center where people can come and learn how to garden and learn about sustain able food system. i'm a bird watcher. we had four types of birds now we have over 30 including hawk and all kinds of migrating birds. there are all sorts of benefits the farm bring. in addition to the benefits it brings to the neighborhood it has a national -- it gets national, international attention. we've been in the new york times twice. it has cement san francisco's reputation as the greenest city on earth. we are one of the top 10 city parks in sunset magazine. we have been [speaker not understood] we're in the

huffington post as top it was like the 7 coolest architecture projects or recycled architecture projects. the new york city high line is famous with number 3, hayes valley farm was number 2. gazillion airplane magazine, what to do in san francisco. german interview with the national geographic. san francisco lonely planet feature is one of the top things to do. so, it gives a lot of attention. if i can just -- can i take another minute? it came together out of the whole series of public input and a lot of support from the mayor's office of economic work force development and the merchants association and the neighborhood association and the local residents and we'd like to see that kind of community input and partnership when we consider what happens with parcel o in the future. i'm part of the leadership of hayes valley farm and i do want to make it very clear we are champions of interim youth. we are excited about moving off [speaker not understood] and we

are fully intending to do that for parcel p and parcel o we would like more interim use possibilities. thank you. >> thank you. hi, my name is jay. my dog callie is here with me. i wanted to take a moment to consider all of our friends, families and loved ones back east where hurricane sandy has created a great stir for a lot of people. working in partnership with the hayes valley neighborhood association, the san francisco parks alliance, and the mayor's office of economic and work force development, hayes valley farm has been packing up planning and expecting to get a notice at the end of this year of this successfully interim use project. after a long wait, parcel member of the hayes valley

neighborhood association finally seeing progress in the development of parcel p. but this is actually what would happen to the other part of the farm, parcel o, the half that isn't about to be built on. much like efforts to support rent control and bans on formula retail, we of hayes valley often stand alone when we strongly advocate for affordable housing in our neighborhood. parcel o is ultimately slated for affordable housing and i'm thrilled it is going to be family affordable housing. but until then, as i'm learning now, many people would like to see that to be an agriculture project until that time when that project breaks ground. not for a while, the story has been that the farm needs to vacate both parcels immediately or do it in 90 days. once parcel p development begins. it recently came to light that this is in large part because there is some sort of deal between the development and the opportunity to stage their construction equipment on parcel o.